Home grown auto major Mahindra and Mahindra on Thursday launched its multi-utility vehicle, the Quanto.

At under 4 metres, the Quanto is the smallest MUV in Mahindra’s stable.

The base version is priced at Rs 5.82 lakh (ex-showroom, Thane), while the top-end model will set you back by Rs 7.36 lakh. See pictures

The Quanto is powered by a 1493 cc mCR100 diesel engine that produces peak power of 100 bhp at 3,750 rpm, and maximum torque of 240 Nm at 1,600-2,800 rpm.

The seven-seater will be available in six colours—Fiery Black, Java Brown, Mist Silver, Toreador Red, Rocky Beige and Diamond While.

The Quanto has opened up a new segment in the Indian automobile market and now has an opportunity to consolidate its presence before others jump in. However, it may see some competition from the passenger car segment due to its pricing. Maruti Suzuki’s Ertiga and Renault’s Duster, among others, are being seen as its competitors for now.

Speaking at the launch, automotive and farm equipment president Pawan Goenka said the Quanto should not face capacity issues the way XUV 500 did. He also added that the company was looking to set up a new plant, but refused to give details.

The company plans to export the vehicle to Europe and South Africa, said Pravin Shah, chief executive, automotive division.

The smaller length of the Quanto means buyers will have to shell out only 12 per cent excise duty as compared the 27 per cent for larger vehicles.

The company plans to sell 1,500-2,000 Quantos a year.

Mahindra's passenger car sales have outpaced that of local rivals such as Maruti Suzuki and Tata Motors thanks to huge demand for the XUV 500 and its all-diesel line-up.

“With the Quanto, Mahindra is aiming to fill a need gap in the Indian automotive market for a versatile and compact SUV. We expect the Quanto to offer an exciting upgrade at a premium to customers who are otherwise looking for premium diesel hatchbacks or entry level diesel sedans,” Mr. Goenka had said last month.